If you’re an Orlando rental property owner researching whether or not to sell or to continue renting, we’re here to point you in the right direction.
If you’re looking to earn a one time chunk of change, selling your house may be the right choice. However, if earning a long-term passive income while building equity in your investment property sounds enticing, holding onto your rental property is your best bet.
Whether you’re a first time rental property owner or an experienced investor with a portfolio of single-family homes, Orlando is one of the best places to generate a return on your investment and earn a profit.
As an experienced Orlando property management company, we know that navigating the Orlando real estate market and making decisions regarding your investment can be difficult, so we’re here to help. To guide you through this process, we’ve shared the top reasons why you should NOT sell your Orlando rental property.
Strong Orlando Rental Market
As 62% of Orlando households are rentals, owning a rental property in Orlando, Florida is an intelligent and highly profitable investment decision. Orlando is a hub for tourism, business, and leisure. The constant influx of visitors and new residents create a dynamic rental market and a high demand for long-term single-family and multifamily rental properties throughout the Orlando Metropolitan Area.
Orlando’s world renowned tourism attractions, business district, shopping centers, and the second largest University in the United States (UCF), allow for consistent economic growth, creating thousands of career opportunities that attract job seekers from all over the world.
Although Orlando rent prices have decreased over the past year, the average rent is about $1,900 per month which still stands higher than the national average rent.
High Mortgage Rates
A combination of high mortgage rates, no income tax, and a plethora of luxurious housing communities make renting rather than buying a home in Orlando a desirable and preferred option in 2024.
As mortgage rates have almost doubled since 2020, most people are reluctant to buy a house right now. High mortgage rates mean buying a house is less affordable, driving people towards renting rather than struggling to pay off a mortgage. With a decrease in the home buyer pool, competition and price offers may be weak.
Since the cost of homeownership has nearly doubled, homes are currently sitting on the market for a longer period of time. Because of this, not only will you miss out on rental property income while your home sits on the market, but the chances you will receive less than your asking price are high.
As experienced rental industry professionals, we can advise that the benefits of owning a rental property are unmatched, and selling your Orlando rental property is not a wise decision for the time being.
Building Equity and Property Appreciation
If you are one of the many homeowners who fell into an accidental landlord situation where owning a rental property was unintentional, with an open mind you will quickly learn that you just stumbled upon an excellent opportunity.
For those interested in selling your Orlando rental property down the line, one of the many benefits of rental property ownership is property appreciation.
Property appreciation means that over time, your property will increase in value. The longer you hold onto your property, the more its value will increase and the higher your profit margin will be when you decide to sell.
For example, the average home value in Orlando is $379,953 — a 116.8% increase from the average Orlando home value in 2014. If you were to purchase a house in 2014 and rent it out for 10 years, on top of the monthly income generated, your property appreciation would be about $200,000.
As Orlando continues to grow and evolve, as Orlando property managers, we believe that home values will continue to increase over a span of the next couple of years in this dynamic real estate market. With that being said, we strongly suggest holding onto your rental property for as long as possible, as that path will allow you to earn the greatest return.
Passive Income from your Orlando Rental Property
The typical motive for investing in a rental property is to earn a passive income. As a rental property owner you can generate a steady cash flow without the work of hands-on responsibilities on a daily basis.
Owning and managing a rental property can take a significant amount of hard work and dedication, so the best way to generate a true passive income is to hire a professional and experienced property manager. A property manager will take over all daily operations from marketing your property to collecting rent payments directly from your tenants. Working with an experienced industry professional is a highly rewarding experience as you’ll have more money in your pocket without having to do much work.
If you are in a position that allows you to keep your rental property, we highly suggest doing so. Earning a passive income while your property appreciates over time is a win-win situation; you’ll earn a steady cash flow now, and a large profit when you sell later.
Should I Sell My Orlando Rental Property? Advice from an Orlando Property Manager
If you feel stuck on the decision of whether or not to keep your rental property, a property manager can help lead you in the direction of success.
A rental property is a lucrative investment and with attentive management and leasing efforts, it can produce a significant income and even change your life. With all of the benefits of owning a rental property in Orlando, we highly recommend keeping your rental property.
Whether you’re a first time rental property owner, an accidental landlord, or a seasoned investor, it can be challenging to manage a successful rental property on your own. That’s why we at The Listing Real Estate Management are here to help.
At The Listing, our comprehensive Orlando property management services have turned hundreds of Orlando rental properties into successful ventures, helping our clients build equity in their properties and collect monthly payments.
Property managers at The Listing manage all aspects of your rental property, saving you time and money. Our services include:
- Marketing and Leasing
- Tenant Screening
- Rent Collection
- Maintenance and Repairs
- Rental Property Accounting
So, if you’ve thought about selling your Orlando rental property, do yourself a favor and get in contact with us today before you make that decision. We will provide you with a COMPLIMENTARY rental price analysis to give you an idea of what you could be earning every month.
Contact Us today at The Listing Real Estate Management, your boutique Orlando property managers, to experience the benefits of owning a successful Orlando rental property!
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